The near-term uptrend status of Nifty remains intact. The market could probably show some more choppy movement or minor dip in the next 1-2 sessions before surging higher in the near term. Immediate support is at 24,600 levels. Overhead resistance to be watched around 25,000-25,100 levels, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed that the highest OI on the call side was at 24,200 and 25,500 strike prices, while on the put side, it was at 24,500 strike price.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
The hourly momentum indicator has triggered a fresh negative crossover, suggesting loss of momentum. Thus, there is a high probability that Nifty is likely to consolidate over the next few trading sessions. On the downside, crucial support is placed at 24,650 – 24,600 where the key hourly moving averages are placed. On the upside, 25,000 is the key psychological hurdle from a short-term perspective.
Ruchit Jain, Lead Research, 5paisa.com
Nifty has been continuing its uptrend with no signs of trend reversal as of now. The market breadth remains healthy while FIIs have continued to add fresh longs post expiry. However, the RSI readings indicate the possibility of some consolidation or a pullback towards support within the uptrend. Hence, there could be some slow and gradual move in the index with stock specific action in the broader market. The immediate term supports for Nifty are placed around 24,620 and 24,500 while resistance as per retracement of recent correction is seen around 25,065 followed by 25,340. Traders are advised to look for stock-specific opportunities and continue to trade in the direction of the primary trend.
Osho Krishan, Angel One
The current price movement may seem insignificant for the benchmark, but the overall tone indicates a positive trend, with the bulls decisively leading in the advance-decline ratio. Additionally, the mid and small-cap stocks exhibit strong performance, outperforming the major indices and contributing to robust market sentiment. For Nifty50, the intermediate support is seen around 24600, followed by sacrosanct demand around the 24,500 zone in the comparable period. On the higher end, 25,000 is very much in the vicinity now, and a decisive breakthrough could lead the next leg of the rally toward the 161.8% retracement of the previous week’s swing at 25,340 on an intermediate basis.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)